US Trustee Knocks Ex-OnCure CEO's Severance In Ch. 11

By Lance Duroni

Law360, Chicago (July 18, 2013, 1:51 PM ET) -- A U.S. trustee on Wednesday objected to a $270,000 severance payment that private equity-owned OnCure Holdings Inc. wants to pay to its former CEO, saying such a payment would need to be part of a broader program for all the bankrupt company’s employees.

The cancer center operator conceded in its motion to approve the payment that it does not have a formal severance policy — a fact that dooms the motion under the Bankruptcy Code, according to an objection filed in Delaware bankruptcy court by U.S....